Prices for travel-related goods and services fell for the second straight month, 1.4% in June, outpacing the 0.1% decline in the economy as a whole, according to the latest Consumer Price Index data from the U.S. Travel Association. The Travel Price Index shows that lower hotel, airline and gasoline prices were the main drivers of the larger price declines in this sector.
In contrast, the economy as a whole experienced its first monthly price decline since 2020, the USTA said in a statement.
“Now is the time for the travel industry to grow demand,” said USTA President and CEO Jeff Freeman, “and travelers are already seeing the benefits, with eight of the 10 busiest days in TSA history occurring in 2024. It is essential that the industry has the right funding, resources and technology to meet the increased demand, coupled with the government’s ongoing efforts.”
On the other hand, comparisons across different time periods, such as month-on-month, year-over-year and pre-COVID-19 levels, reflect favorable price trends for travelers, the statement said. The TPI is updated monthly by the USTA following the Bureau of Labor Statistics’ CPI release.
In October, USTA and Ipsos reported that air travel hassles are projected to cost the U.S. economy $71 billion next year. To address this, the administration needs to prioritize a long-term FAA reauthorization bill, strengthen the FAA’s strategy and funding, and adopt leading air travel practices from other countries.
